Kyndryl abandons plans to acquire Solvinity

US IT service provider Kyndryl has definitively abandoned its ambition to acquire Solvinity, the company that hosts several important services in the Netherlands, including the country’s national ID system DigiD.

In its latest quarterly report about the company’s financial results, Kyndryl says that the acquisition of Solvinity will not be realized due to a ban by the Dutch authorities.

In the documents, which have been filed with the Securities and Exchange Commission (SEC), the company states that the issues surrounding the acquisition didn’t result in any material costs.

Although Kyndryl says it’s no longer trying to acquire Solvinity, the quarterly report clearly says that Solvinity’s controlling shareholders “are exploring remedies,” including contesting the government’s decision and potentially seeking recovery from the company.

In November 2025, Kyndryl announced that it was interested in acquiring Solvinity, a provider of managed cloud platforms and services in the Netherlands such as DigiD and MijnOverheid.

Privacy experts and politicians raised concerns that both personal and sensitive data of over 16 million DigiD users could fall into the hands of American authorities. On top of that, the US government could potentially disable services in the Netherlands, which could severely cripple society, they argued.

The Dutch government was asked to put a stop to the acquisition of Solvinity. A handful of citizens even filed summary proceedings against the government, but the District Court of The Hague dismissed the claims.

In the end, Willemijn Aerdts, Minister for the Digital Economy and Sovereignty, imposed a complete ban on the acquisition.

In response, Kyndryl said it is “extremely disappointed” with the government’s decision and stated that it has always collaborated with the cabinet in good faith.

“Despite this collaboration and our long history of managing business-critical activities in the Netherlands, the politicization of this process has overshadowed the clear and significant benefits that this transaction could have offered to Solvinity’s customers and Dutch citizens,” the IT service provider stated.